Over a number of my previous articles I have discussed the benefits of passive equity portfolios. I have also spoken about ideal product options to build such portfolios. But I have never really touched upon how these various options actually go together in a portfolio. I will therefore touch upon this today. Passive equity portfolios are usually considered to be ideal for young earners and new investors. But they are actually suited to anyone looking for a simple, low mainte

So far in this series on the NPS we have understood the taxability and exit rules as applicable in 2026 . We have also understood the Multiple Scheme Framework (MSF) . One of the major selling points of the MSF is the option to allocate upto 100% to equity. This may sound like an exciting proposition from the standpoint of expected returns. But holding any degree of equity within the NPS is fraught with risk. And in today's post I will explain why. The Illusion Of Passivity E

In last week's post , we looked at the applicable taxability and exit rules of the National Pension System (NPS). These are in light of the regulatory changes notified in December 2025. Another important change that came about last year was the introduction of the Multiple Scheme Framework (MSF). And the MSF would be the focus of today's discussion. I will talk about what it is, how it works and the right way to use it. What Is The Multiple Scheme Framework (MSF)? The MSF is

The National Pension System (NPS) is a popular defined contribution plan for retirement. A defined contribution plan is one which allows an individual to periodically invest money into a product throughout their careers. A final lumpsum amount is then redeemed when they retire. NPS is usually a good option for government employees. It is also quite popular among non government subscribers. But, the shortcomings of the NPS mostly outweigh the benefits it offers. And non gove

Index funds have existed for more than 50 years now. But so have critics of indexing as a strategy. This has led to a number of fundamentally flawed arguments being leveled at indexing. I debunked a few of these myths in my earlier articles Disproving Arguments Against Index Investing - I : Basic Misconceptions and Disproving Arguments Against Index Investing - II : What The Data Has To Say . But a few more arguments have been leveled at indexing in the recent months. And to

In the world of personal finance there are a number of popular catchphrases that are used. They usually pertain to timeless principles of investing and money management. But our understanding of these catchphrases is usually only superficial. As a result we never really apply them the right way. Therefore in today's post I am going to look at the most popular catchphrases that are used. I will show why our understanding of each of them is wrong. I will then show the right way

Specialised Investment Funds (SIFs) are the latest products intriguing the minds of Indian investors. This is natural given that SIFs were launched recently by SEBI in February 2025. Common questions on investors' minds include : What are SIFs? How do they work? How are they different from other asset classes? How are they taxed? Is there a case for investing in them? And these are the questions that I will answer today. The Nature Of The Beast SIFs are currently being advert

Financial planning is a vitally important exercise. It adds value to most people. Yet it is often criticised for two main reasons. These are reflected in the following questions I often get from clients : How can we be sure that the assumptions we are using in my plan are correct? You say that my plan cannot guarantee the achievement of my goals. So what is the point of planning? The first question reflects skepticism over the accuracy of assumptions used for financial planni

Most investors today hold multiple asset classes in a portfolio. They also realise that doing this achieves adequate diversification. But most investors do not fully understand the asset classes they hold. This applies to both the way each asset class behaves and the returns they generate. It causes investors to have unrealistic expectations. And this ultimately leads to disappointment for them. Therefore these asset classes and the returns they offer must be understood the r

Bearing risk is an unavoidable aspect of investing. Investment return is the reward earned for bearing investment risk. Not bearing risk means our money would not grow. But this does not mean that we take risks indiscriminately. We must ensure that we only bear reasonable risks. A reasonable risk is any risk where : The chances of a positive outcome are more than 50% The potential reward is commensurate to the degree of risk and effort involved. Most forms of investment risk

Retirement planning will always be one of the most challenging goals one plans for. This is no different in India. Indians today face a number of challenges when planning for retirement. A study from February 2025 titled 'How India Thinks About Retirement' highlights these challenges. It highlights trends observed in responses from 1500 retirees and pre retirees all over India. And today I am going to talk about each of these challenges in detail. I will show why these challe

The amount of health insurance coverage required is a function of prevailing healthcare costs and inflation thereon. For any major city in India, the ideal coverage amount advisable would be Rs 20 lakh per member of a family. This equates to a total coverage of Rs 60 lakh for a family of three and Rs 80 lakh for a family of four. This represents the amount of coverage required in one's personal capacity. It can be purchased as a combination of a base and super top up policies

Most investors would wish to include mid and small cap equity in their portfolios. But the right way to approach mid and small cap investing is still not properly understood. A number of questions need to be answered to gain a holistic understanding of the subject. Are mid and small caps a necessity in an equity portfolio? Are the pros of including them worth the cons? What is the right way to include mid and small cap equity, if warranted? What must investors keep in mind wh

Human behaviour plays a vital role in investing. In fact most investment errors can be traced back to human behaviour at some level. Flaws related to the human behaviour in investing are of two kinds. These are cognitive flaws and behavioural biases. Cognitive flaws are tied to blind spots in the way we think and decide. Behavioural biases are tied to blind spots in the way we act. Cognitive flaws and behavioural biases are therefore closely related. Behavioural biases are al

Across a number of my past articles I have spoken about the major benefits of investing in index funds. But there are a number of other benefits to holding index funds. These usually go unnoticed. But they contribute just as much to the effectiveness of index funds. Therefore in today's post I am going to be talking about these less apparent benefits of index funds in detail. Complete Transparency And Control Over The Controllables We have little or no control over the way in

The past five years have seen a number of young Indian individuals enter the financial markets. Today such investors would have a basic understanding of the way financial markets and instruments work. This experience is often enough to give them the confidence to mouth certain statements. These statements may make them sound intelligent. But very often, young investors make such statements without understanding the gravity and truth behind them. Therefore today I will look at

In last week's post I began the discussion on multi asset passive FoFs by looking at their pros and cons. Today I will delve deeper into the construction and working of multi asset passive FoFs. I will then offer my opinion on the relevance of such funds to our portfolios. Most multi asset passive FoFs are built and work on the basis of common principles with subtle differences. This can be understood by looking at a couple of such funds in detail. Zerodha Multi Asset Passiv

Multi asset passive fund of funds (FoFs) are the current topic of discussion amongst most investors. These are instruments that offer exposure to a variety of asset classes through passive funds. They are therefore touted as a one fund portfolio and a substitute for asset allocation. But is that the whole truth about such funds? Or is there more that investors must bear in mind before they add such funds to their portfolio? My next two posts will provide the answers. This wee

Equity is the favourite asset class of almost every Indian investor today. This is even more true when equity exposure is combined with...

Estate planning mostly focuses on deciding a structure for the transmission of our assets. But a common mistake made in this process is...